Need serious help in solving problem

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SxEAJ

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Ok, I opened up my presents for christmas, and omg, its the game I have always wanted, dungeon siege 2, and the expansion. I install it just fine, everything is going awesome, I'm meeting all of the system requirements, and then when I start it, the screen goes black and flickers for about 30 seconds, then a error messages pops up and says "Video Intilization failure". I look up information, and the only thing I can find is that, that error is only supposed to happen if you have Laplink installed and your comp, and I don't. I went into the DxDiag, and tested my directX. I have dirextx9. I tested the direct draw, works like a dream, but when I get to the direct3D, the tests fails, and all of them fail at step 8. This right here would be the problem, but NO idea what to do. Help me please!
 
Didn't work

I downloaded the catalyst 6.1 driver, uninstalled the current driver, rebooted, then installed the 6.1 driver, but said it couldn't find a video card. So after that i removed all my drivers, and downloaded the 7.2 catalyst driver for the ATI Raedeon 9550, which is what I have. Also, I was talking to my dad about it, and he said that DirectX might be corrupted, and that you need DirectX to run almost any 3D game. Should I try Re-installing directX or what. Also, is ATI Raedeon 9550 good at all?
 
Gah

It turns out the latest driver I downloaded was the newest one,which couldn't support GPU 100%. So I switched my driver, and actually got it to the loading screen, but right when it gets to the loading screen, dungeon siege 2 says "Exception Detected, this may take a couple of minutes to report". Right after it crashes, and I get the send error report message. I know its not direct X now, because I did the DXDIAG test, and exceed the system requirements. I really want to play this game, but going through of all this just to play is going to ruin it for me. I thought about selling today. :mad:
 
Explaining wrong

Ok, lets get this straight. My computer runs BioShock, Crysis, and even Halo 2, with 10 Gigs left to spare. They can run like dreams, Crysis has to go on low though. Now, the latest catalyst driver that was released from ATI has a bug in itself. Not my video card. It's even been reported that this driver does not support GPU 100%, and to downgrade to a older one. But the problem is here, Dungeon Siege 2 has this weird error saying theres a exception detected, and I can't fix it. I'm getting really pissed off at the game at this point.:darth:
 
First of all DX9 isn't necessarily the latest DX9. When I reinstall my OS (XP) I have DX9 included in the SP2 which is slipstreamed. I still have almost 10+ updates to install to bring it up to date. Go here and download and install the latest DX9 end user runtime updates through August 2007. This will include all previous updates. Also check for any patches for the game. Uninstall your gpu drivers and go to guru3D and download the app that removes any orphans left on the system from previous ATI driver installations here. They used to have one on ATI's site but it seems to be gone. Then reboot and install the drivers you choose.

EDIT:Hope this helps. I would be bummin out to!
 
I agree with luvhuffer. There have been many new versions of DX9 over the past few months. The latest version of DX9 is November 2007. Just because DXDiag doesn't report any errors, doesn't mean there isn't a problem with the version you're running. As far as patches, there is only one for the game, and I believe it was included with the game you have (Dungeon Seige 2 w/expansion pack). Have you tried uninstalling the game and reinstalling it??
 
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